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French economy is back in recession, spelling trouble for region

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A man holds a ten Euro note on as he walks through a market in Paris, May 15, 2013. THE CANADIAN PRESS/AP, Michel Euler

PARIS – France’s economy has fallen back into recession, spelling trouble for the region.

The national statistics agency, Insee, said Wednesday that gross domestic product fell 0.2 per cent in the first quarter of the year. The agency also revised its data for the fourth quarter of last year, saying GDP fell 0.2 per cent, up from a 0.3-per cent retraction.

When GDP falls for two consecutive quarters, an economy is considered to be in recession. France’s economy hasn’t grown significantly in over a year and was last in recession at the beginning of 2012.

Slow growth is plaguing many European countries as they struggle to cut their spending and debts. A recession in France, the eurozone’s second-largest economy, is likely to only exacerbate problems throughout the region.

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